Tassal Group Strategic Thoughts, page-407

The cost of growing fish is capitalised until they are harvested so biomass shouldn’t have an impact on franking. It’s hard to get thru your head…so I just ignore SGARA profit (except that it’s an indication of future profit if prices remain elevated).But to your point, SGARA profit should be very strong just on the pricing impact, less any extra selling costs that also get taken into account when calculating SGARA profit. It’s a bit of a black art and I’m not sure the company doesn’t “smooth” it by estimating selling prices/costs. Eg how do you value a 2.5kg fish in the water, costs to harvest and sell such a fish? It’s easy with a fish that’s 5kg and ready to go.So there should be a big SGARA lift on price improvements and maybe lower selling costs (?) but tonnes in the water is impossible for us to forecast, and could offset.Gotta say tho, I haven’t had this level of anticipation ahead of a result in a long time. It should be a cracker.